Bankruptcy Lawyer DeSoto, TX
If you don’t earn much income and you’re thinking about filing for Chapter 7 bankruptcy, it’s important to connect with an experienced bankruptcy lawyer DeSoto, TX residents turn to before moving forward with this plan of action. Chapter 7 bankruptcy can be life-changing in the most positive ways. However, it must be approached in an informed, detail-oriented way or you could find yourself having to surrender precious property to repay your creditors before your eligible debts can be discharged.
Only members of low-income households are allowed to seek bankruptcy relief under Chapter 7 of the Bankruptcy Code. Those who are ineligible for this option can speak with our firm’s DeSoto, TX bankruptcy lawyer team about filing under Chapter 13 of the Bankruptcy Code instead. The primary reason why only select filers are permitted to benefit from Chapter 7 debt relief is that, unlike Chapter 13 bankruptcy filers, Chapter 7 bankruptcy filers aren’t required to repay any portion of their eligible debts before they’re discharged. This means that if you’re eligible to seek Chapter 7 bankruptcy protection, your debts can be wiped away without any additional repayment obligations.
The primary “catch” of the Chapter 7 bankruptcy system is that the trustee assigned to your case will be permitted to sell any of your property that is classified as “non-exempt.” Texas has a very generous exemption structure, so chances are good that very little (if any) of your property will be subject to sale by your trustee. However, you’ll want to speak with the experienced legal team at The Allmand Law Firm, PLLC about any property you own that is of particular value, as this is the property most likely to be classified as non-exempt during the Chapter 7 bankruptcy process.
Chapter 7 Bankruptcy Exemptions for Texas Filers
Only a handful of states allow their residents to choose between a state exemption option and the federal exemption option. Texas is one of those minority states. However, because Texas has one of the most generous state exemption structures in the nation, chances are that you’ll want to file under the state option, not the federal one. With that said, if your unique property needs are better served by claiming federal exemptions, we’ll make sure to let you know that.
Although there are some limitations to this exemption based on acreage and location, Texans are generally able to completely exempt any equity they have in a primary residence. Meaning, that unlike in other states, Texans are not generally at risk of having equity in their homes sold by the trustees assigned to their Chapter 7 bankruptcy cases. Other significant Texas exemptions include the total value of one motor vehicle per licensed household member, the total value of home furnishings, clothing, food, health savings accounts, and domestic animals. Other assets may be exempted per their total value or partial value according to Texas law.
Legal Assistance Is Available
This area of law is unquestionably complex. Thankfully, our team has a great deal of experience protecting the property of Chapter 7 filers. To learn more about your bankruptcy options and how bankruptcy exemption laws may affect you and your family, connect with our DeSoto, TX bankruptcy lawyer team today; we look forward to speaking with you.